Ola Electric Mobility Ltd shares fell 3.67 per cent in Tuesday's trade to hit their lowest value of Rs 74.82. The stock was last seen trading 2.81 per cent lower at Rs 75.49. At this price, it has tanked 24.28 per cent in a month.
The electric two-wheeler maker has been facing several service-related issues. And, the government has intensified its scrutiny of Ola Electric's handling of consumer complaints following a showcause notice issued by the Central Consumer Protection Authority (CCPA).
"We want to be sure if Ola Electric's claim of resolving 99 per cent problems is true," a person familiar with the development told Business Today TV. Last week, the Bhavish Aggarwal-led company said that it has resolved 99.1 per cent of complaints to customers' satisfaction.
Analysts largely suggested that the counter could remain 'bearish' in the near term.
"Ola Electric has gained the market share but breakeven and profitability are the key parameters that will be closely watched after the recent uproar on social media over service-related issues. The stock will continue to remain weak on a medium- to short-term perspective," said Kranthi Bathini, Director of Equity Strategy at WealthMills Securities.
"Ola Electric is bearish but also oversold on daily charts with next support at Rs 53. Investors should buy only if a daily close is above the resistance of Rs 83 for an upside target of Rs 103 in the near term," said Sebi-registered research analyst AR Ramachandran.
"The stock is in a weak position and remains in a 'no-trade' zone. Investors are advised to stay away until a clearer trend emerges," said Ameya Ranadive CMT CFTe, Sr Technical Analyst at StoxBox.
"Ola Electric shares looked weak on charts. The stock can slip towards the Rs 70-mark," said Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking.
The stock's 14-day relative strength index (RSI) came at 35.01. A level below 30 is defined as oversold while a value above 70 is considered overbought.
Founded in 2017, Ola Electric is a pure-play electric vehicle player that primarily manufactures electric vehicles and certain core components for electric vehicles such as battery packs, motors, and vehicle frames at the Ola Futurefactory.
As of September 2024, promoters held a 36.78 per cent stake in the E2W player.